5 years ago

Hotel asset management is not just about costs – it MUST include internet marketing

Traditionally, hotel asset management has been focused on operations and cost control as the main elements to consider.

But over the last few years we have seen a clear shift in revenue management getting a more prominent role.

Profitability is not only a result of cost control but also revenue generation. Finally we also see sales and marketing become a key area for the by hotel asset manager.

Why was there so little focus on marketing and sales previously? And would you not want to control the promotion and positioning of your property?

As in the early days most asset management, companies signed a franchise deal with a large chain, and this was left for the brand to manage.

But the playing field has changed dramatically over the past two decades.

New reality

No longer are the hotel franchises the only brands that deliver a global distribution and marketing platforms to hotels. With the rise of the search engines, online travel agencies, review websites, metasearch and social media, hotels have to be present in each to achieve a good market share.

Hotels can no longer solely depend on the brand marketing strategies of the chain to compete in their local market.

The so-clled SoLoMo (social, local, mobile) trend in marketing has caught many of the more traditional hotel companies off guard. The old school approach is not sufficient anymore to guarantee good results.

We simply can’t keep doing the same thing each year and expect the same results. Sales and marketing efforts and investments should be made measurable to evaluate their impact.

We also have to keep looking at which budgets we can allocate and spend differently to get a better ROI.

And, importantly, going through this period of economic constraint, asset managers have to make sure that previously scrapped expenses don’t make it back, once revenues rise again.

Staying the course

A good example of the new asset management come via the results generated at Hotel de Londres y de Inglaterra in San Sebastian, Spain (a client).

The hotel was previously managed by a traditional national hotel group. Focus was on the brand and not on the property. Overheads and transaction costs were high, including corporate marketing contributions.

Now run as an independent property, revenues have gone up over 25% in the past two years (direct sales, through the hotel’s own website more than doubled), this against the backdrop of Spain’s tough economic situation.


With a different approach to revenue management, search engine optimization, and social media marketing, online reach can be increased.

For example, previously the property was positioned number 38 on TripAdvisor, out of 51 in the destination. Just by asking guests for more feedback on review sites has seen it climb to number five. We expect to be in the Top 3 before the end of the year.

Hotel asset management by merely controlling cost will not get you the results you need. Marketing is a vital part of the final success and achieving profit targets.

NB: More on hotel asset management.

NB2: Charts-graphs-strategy image via Shutterstock.

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Patrick Landman

About the Writer :: Patrick Landman

Patrick Landman is a contributor to tnooz and founder and CEO of Xotels. This hotel management group assists independent hotels with revenue management, online marketing and internet distribution strategies.

They offer outsourcing services, coaching, consulting and training. In his blog, Patrick challenges hoteliers to think out of the box and not to accept the established order.

Through a passionate drive for growth and improvement he brings creative tips, ideas and best practices to the table that can help hotels drive up their bottom line.

In previous roles he has helped to develop businesses like RateTiger and Hotels.com into industry leaders. 



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  1. HMG

    Well said Patrick and Xotels! SoLoMo is indeed the order of the day and more than 60% of online searches on mobile phones for hotels are for same day reservations. Leaving hotel marketing in the hands of a nebulous franchise or remote management that does not pay attention to their regional properties is a mistake when it comes to increasing one’s bottom line. We always recommend extensive internet marketing, since this is the trend of the future, and much greener than having a postcard or direct mail campaign, not to mention less costly than using television advertising. It makes more sense to have one full hotel than two hotels that are half full. These days, it is the internet that helps fill hotels, not just appealing billboards sporting a slick logo.


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